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Nottingham is a property investor haven. Not only does it have lucrative rental yields but has also achieved some of the highest capital growth in the country. Over the last year alone, Nottingham’s property prices have increased by 7.55%.
It is projected that in the next ten years Nottingham will top the tables for average house price growth in the UK. The average price for a property in Nottingham is £237,242, which is significantly lower than the UK average. As prices are showing strong growth, you will be able to achieve lucrative returns for little investment. In terms of rental yields, Nottingham is averaging 5.6% – some of the highest in the country. This is only expected to increase, as the city centre undergoes major regeneration.
£237,242Average Property Price
A Young Population is Key for
While the rest of the population are getting older, Nottingham is getting younger. This is a huge selling point to investors, as the younger population is much more likely to rent than to buy.
With over 30% of its population is aged between 18 and 29, it’s no surprise that the private rental sector now accounts for over 26% of residences in Nottingham.
A key reason for this is that Nottingham is home to two, prestigious universities. The University of Nottingham and Nottingham Trent University together have an enrolment of over 70,000 students. This means that 15% of Nottingham’s population are full-time university students – a key demographic in the rental sector. Low vacancy rates, and strong graduate retention, ensures a conveyor belt of talent is supplied to the city’s economy. This provides investors with significant rental opportunities.
The City Continues to Work on
Nottingham, like many other UK cities, has ample projects in the pipeline. Notably, Nottingham has begun a £2 billion master project transforming the face of the city. The city centre will appear brand new. Plans include new, accessible transportation, a renovated shopping centre, a new ‘City hub’ college campus, and Grade A office space. As a result, thousands of new jobs are to be created, which will increase rental demand in the area.
Nottingham’s connectivity will be boosted even further because of large-scale investment into the transport sector. The Nottingham Tram Network will be the beneficiary of an additional £570 million investment.
This is on top of an £800 million that is being allocated to an integrated Transport Hub. On top of that, the introduction of the HS2 will massively reduce travel times to other UK hubs. This opens up a plethora of businesses opportunities. Also, better transport links widen the pool of potential tenants – which is great news for investors.
Broadmarsh Project £250m
The Broadmarsh regeneration involves the destruction and rebuilding of the Broadmarsh car park and bus station. The project will feature a new intu Broadmarsh shopping centre to make Nottingham one of the top five retail destinations in the country. Surrounding areas will be pedestrianised as well, further enhancing the connectivity of the city centre and reducing congestion. The project is projected to create over 3,000 new jobs.
City Hub Campus:£58m
The new City Hub campus is a monumental addition to Nottingham's skyline. As part of the wider regeneration of the Southern Gateway scheme, the campus will create a shared workspace for students and businesses. This will encourage better collaboration between the college and employers. It will also be a magnet for start-ups and new businesses, providing the wider community with improved skills and resources.
The Guildhall site is a Grade II listed building in the centre of Nottingham that has recently been granted a £120m upscale. As one of the most significant projects in Nottingham in recent years, the building will become a 13-storey development. It will feature two new bars/restaurants, a spa, a gym, conference facilities and a glass connection to link the tower with the historic Guildhall building. There will also be a fine-dining rooftop restaurant, and a hotel totalling 160 rooms.
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